Find the amount and compound interest on Rs. 1,00,000 compounded semi annually for 1 and hafl years at the rate 10% per annum
Answers
Answer:
Principal = Rs.10,000
Time = 1\frac{1}{2} years
Rate = 10% per annum
CASE 1 Interest on compounded half yearly.
Rate = 10% per annum = 5 % per half yearly
T= 1\frac{1}{2} years,n=3
A= P\left ( 1+\frac{R}{100} \right )^{n}
A= 10000\left ( 1+\frac{5}{100} \right )^{3}
A= 10000\left ( 1+0.05 \right )^{3}
A= 10000\left ( 1.05 \right )^{3}
A= 11576.25 = Amount
CI = Amount - principal
CI = 11576.25-10000
CI = 1576.25
CASE 2 Interest on compounded anually
Rate = 10% per annum
T= 1\frac{1}{2} years ,n=1
A= P\left ( 1+\frac{R}{100} \right )^{n}
A= 10000\left ( 1+\frac{10}{100} \right )^{1}
A= 10000\left ( 1+0.1\right )^{1}
A= 10000\left ( 1.1\right )^{1}
A= 11000 = Amount
CI = Amount - principal
CI = 11000-10000
CI = 1000
Interest for half years on 11000 =
\frac{P\times R\times T}{100}
=\frac{11000\times 10\times \frac{1}{2}}{100}
= 55\times 10
= 550
Total interest = 1000+550
= RS 1550
Since 1576.25 > 1000